Protecting your assets in 4 easy ways

The following article highlights what you need to know about asset protection.

13:28 06 August 2014

One of the most difficult things to do is replace your possessions with your money. Insurance cover therefore is essential to mitigate loss when it occurs. You might probably have a friend or relative that might help you out but counting on such uncertain help will leave you vulnerable. That is why it essential that you have insurance cover to help you out when tough times come knowing.

 

Insurance

 

When you have an insurance cover you can rest easy. This is a corollary to good money management practices. So what is insurance all about? 

 

You pay a premium per month to cover against unprecedented loss maybe fire or some sort of risk. In order to mitigate the risk, you take up an insurance cover. Life insurance cover, for instance, helps to take care of your loved ones in case you suddenly depart.

 

It is important that you review your policy from time to time in case there are major life altering events like a the birth of a new child.

 

Power of attorney (EPA)

 

An EPA is a document that legally allows people to act on your behalf at some point if you are non-compos mentis and are incapacitated. EPAs fall into two categories: Estate and personal.

 

EPAs ensure that you no one can handle your estate matters without your say so.

 

Wills

 

You have heard of people dying intestate and squabble about the estate are rife. If you have a will you will not squabble with those people you leave behind. The essence of a will is to ensure that your loved ones do not endure unnecessary stress.

 

Family trust

 

This is where you set up a fund for your family that will be executed after a certain period. However, they will require you to have boatloads of money. Ensure that you get advice for it first.